Influence of capital allocation on interregional inequality of public services: differentiated evidence of investment by the government and market in China

REFERENCES

• Ahmad, J. (2005). Decentralization and service delivery. World Bank Publications.
   Google Scholar
• Albalate, D., Bel, G., & Fageda, X. (2012). Beyond the efficiency-equity dilemma: Centralization as a determinant of government investment in infrastructure. Papers in Regional Science, 91(3), 599–615. https://doi.org/10.1111/j.1435-5957.2011.00414.x
   Web of Science ®Google Scholar
• Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
   Web of Science ®Google Scholar
• Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)01642-D
   Web of Science ®Google Scholar
• Bai, C., Du, Y., Tao, Z., & Tong, S. Y. (2004). Local protectionism and regional specialization: Evidence from China’s industries. Journal of International Economics, 63(2), 397–417. https://doi.org/10.1016/S0022-1996(03)00070-9
   Web of Science ®Google Scholar
• Baldwin, R. E., & Krugman, P. (2004). Agglomeration, integration and tax harmonisation. European Economic Review, 48(1), 1–23. https://doi.org/10.1016/S0014-2921(02)00318-5
   Web of Science ®Google Scholar
• Banerjee, A. V., & Moll, B. (2010). Why does misallocation persist? American Economic Journal: Macroeconomics, 2(1), 189–206. https://doi.org/10.1257/mac.2.1.189
   Web of Science ®Google Scholar
• Barca, F., McCann, P., & Rodriguez-Pose, A. (2012). The case for regional development intervention: Place-based versus place-neutral approaches. Journal of Regional Science, 52(1), 134–152. https://doi.org/10.1111/j.1467-9787.2011.00756.x
   Web of Science ®Google Scholar
• Barone, G., de Blasio, G., D’Ignazio, A., & Salvati, A. (2019). Incentives to local public service provision: An evaluation of Italy’s Obiettivi di Servizio. Papers in Regional Science, 98(2), 1195–1213. https://doi.org/10.1111/pirs.12395
   Web of Science ®Google Scholar
• Bekaert, G. (1995). Market integration and investment barriers in emerging equity markets. World Bank Economic Review, 9(1), 75–107. https://doi.org/10.1093/wber/9.1.75
   Web of Science ®Google Scholar
• Benini, R., & Czyzewski, A. (2007). Regional disparities and economic growth in Russia: New growth patterns and catching up. Economic change and restructuring, 40(1), 91–135. https://doi.org/10.1007/s10644-007-9026-0
   Google Scholar
• Bentley, G., & Pugalis, L. (2014). Shifting paradigms: People-centred models, active regional development, space-blind policies and place-based approaches. Local Economy, 29(4-5), 283–294. https://doi.org/10.1177/02690942145413
   Google Scholar
• Besley, T., & Case, A. (1995). Incumbent behavior-vote-seeking, tax-setting, and yardstick competition. American Economic Review, 85(1), 25–45. https://doi.org/10.3386/w4041
   Web of Science ®Google Scholar
• Besley, T., & Ghatak, M. (2001). Government versus private ownership of public goods. Quarterly Journal of Economics, 116(4), 1343–1372. https://doi.org/10.1162/003355301753265598
   Web of Science ®Google Scholar
• Bian, Y., Song, K., & Bai, J. (2019). Market segmentation, resource misallocation and environmental pollution. Journal of Cleaner Production, 228, 376–387. https://doi.org/10.1016/j.jclepro.2019.04.286
   Web of Science ®Google Scholar
• Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
   Web of Science ®Google Scholar
• Blundell, R., & Bond, S. (2000). GMM estimation with persistent panel data: An application to production functions. Econometric Reviews, 19(3), 321–340. https://doi.org/10.1080/07474930008800475
   Google Scholar
• Boycko, M., Shleifer, A., & Vishny, R. W. (1996). A theory of privatisation. Economic Journal, 106(435), 309–319. https://doi.org/10.2307/2235248
   Web of Science ®Google Scholar
• Boyne, G. A. (2002). Theme: Local government: Concepts and indicators of local authority performance: An evaluation of the statutory frameworks in England and Wales. Public Money and Management, 22(2), 17–24. https://doi.org/10.1111/1467-9302.00303
   Web of Science ®Google Scholar
• Brandsen, T., & van Hout, E. (2006). Co-management in public service networks-The organizational effects. Public Management Review, 8(4), 537–549. https://doi.org/10.1080/14719030601022908
   Web of Science ®Google Scholar
• Caldeira, E. (2012). Yardstick competition in a federation: Theory and evidence from China. China Economic Review, 23(4), 878–897. https://doi.org/10.1016/j.chieco.2012.04.011
   Web of Science ®Google Scholar
• Camagni, R., & Capello, R. (2013). Regional competitiveness and territorial capital: A conceptual approach and empirical evidence from the European Union. Regional Studies, 47(9), 1383–1402. https://doi.org/10.1080/00343404.2012.681640
   Web of Science ®Google Scholar
• Camisón, C. (2004). Shared, competitive, and comparative advantages: A competence-based view of industrial-district competitiveness. Environment and Planning A: Economy and Space, 36(12), 2227–2256. https://doi.org/10.1068/a3759
   Web of Science ®Google Scholar
• Chen, J., Zhao, D., He, B., & Stanojevic, S. (2022). How do fiscally created one-city monopolies cause intra-provincial inequality in China? Land Use Policy, 120, 106228. https://doi.org/10.1016/j.landusepol.2022.106228
   Web of Science ®Google Scholar
• Chu, S. N., & Song, L. (2015). Promoting private entrepreneurship for deepening market reform in China: A resource allocation perspective. China & World Economy, 23(1), 47–77. https://doi.org/10.1111/cwe.12099
   Web of Science ®Google Scholar
• Claessens, S., Djankov, S., Fan, J., & Lang, L. (2003). When does corporate diversification matter to productivity and performance? Evidence from East Asia. Pacific-Basin Finance Journal, 11(3), 365–392. https://doi.org/10.1016/S0927-538X(03)00029-5
   Google Scholar
• Costa-Font, J. (2010). Does devolution lead to regional inequalities in welfare activity? Environment and Planning C: Government and Policy, 28(3), 435–449. https://doi.org/10.1068/c09156
   Web of Science ®Google Scholar
• Costa-Font, J., & Moscone, F. (2008). The impact of decentralization and inter-territorial interactions on Spanish health expenditure. Empirical Economics, 34(1), 167–184. https://doi.org/10.1007/s00181-007-0166-x
   Web of Science ®Google Scholar
• Duncan, S. S. (1989). Uneven development and the difference that space makes. Geoforum; Journal of Physical, Human, and Regional Geosciences, 20(2), 131–139. https://doi.org/10.1016/0016-7185(89)90034-1
   Web of Science ®Google Scholar
• Ek, C., & Wu, G. L. (2018). Investment-cash flow sensitivities and capital misallocation. Journal of Development Economics, 133, 220–230. https://doi.org/10.1016/j.jdeveco.2018.02.003
   Web of Science ®Google Scholar
• Faber, B. (2014). Trade integration, market size, and industrialization: Evidence from China’s national trunk highway system. Review of Economic Studies, 81(3), 1046–1070. https://doi.org/10.1093/restud/rdu010
   Web of Science ®Google Scholar
• Guo, D., Jiang, K., Xu, C., & Yang, X. (2020). Clustering, growth and inequality in China. Journal of Economic Geography, 20(5), 1207–1239. https://doi.org/10.1093/jeg/lbz038
   Web of Science ®Google Scholar
• Halleck Vega, S., & Elhorst, J. P. (2015). The SLX model. Journal of Regional Science, 55(3), 339–363. https://doi.org/10.1111/jors.12188
   Web of Science ®Google Scholar
• Harrison, J., Delgado, M., Derudder, B., Anguelovski, I., Montero, S., Bailey, D., & DePropris, L. (2020). Pushing regional studies beyond its borders. Regional Studies, 54(1), 129–139. https://doi.org/10.1080/00343404.2019.1672146
   Web of Science ®Google Scholar
• Harrison, J., & Growe, A. (2014). From places to flows? Planning for the new ‘regional world’ in Germany. European Urban and Regional Studies, 21(1), 21–41. https://doi.org/10.1177/0969776412441191
   Web of Science ®Google Scholar
• Hayter, R. (2004). Economic geography as dissenting institutionalism: The embeddedness, evolution and differentiation of regions. Geografiska Annaler: Series B, Human Geography, 86(2), 95–115. https://doi.org/10.1111/j.0435-3684.2004.00156.x
   Google Scholar
• He, Y., Zhou, G., Tang, C., Fan, S., & Guo, X. (2019). The spatial organization pattern of urban-rural integration in urban agglomerations in China: An agglomeration-diffusion analysis of the population and firms. Habitat International, 87, 54–65. https://doi.org/10.1016/j.habitatint.2019.04.003
   Web of Science ®Google Scholar
• Herrero-Alcalde, A., & Tranchez-Martin, J. M. (2017). Demographic, political, institutional and financial determinants of regional social expenditure: The case of Spain. Regional Studies, 51(6), 920–932. https://doi.org/10.1080/00343404.2016.1146822
   Web of Science ®Google Scholar
• Iammarino, S., Rodriguez-Pose, A., & Storper, M. (2019). Regional inequality in Europe: Evidence, theory and policy implications. Journal of Economic Geography, 19(2), 273–298. https://doi.org/10.1093/jeg/lby021
   Web of Science ®Google Scholar
• Jessop, B., & Sum, N. L. (2018). Geopolitics: Putting geopolitics in its place in cultural political economy. Environment and Planning A: Economy and Space, 50(2), 474–478. https://doi.org/10.1177/0308518X17731106
   Google Scholar
• Jia, J., Guo, Q., & Zhang, J. (2014). Fiscal decentralization and local expenditure policy in China. China Economic Review, 28, 107–122. https://doi.org/10.1016/j.chieco.2014.01.002
   Web of Science ®Google Scholar
• Jiang, Z., Jin, P., Mishra, N., & Song, M. (2017). Market segmentation and industry overcapacity considering input resources and environmental costs through the lens of governmental intervention. Environmental Science and Pollution Research, 24(26), 21351–21360. https://doi.org/10.1007/s11356-017-9639-4
   PubMed Web of Science ®Google Scholar
• Kanbur, R., & Venables, A. J. (2005). Spatial inequality and development. Oxford University Press.
   Google Scholar
• Keller, J., & Virág, T. (2022). A drop in the sea or catalyst for change: Diverse effects of the place-based approach in Europe. European Planning Studies, 30(5), 860–878. https://doi.org/10.1080/09654313.2021.1928047
   Web of Science ®Google Scholar
• Li, B., Li, T., Yu, M., & Chen, M. (2017). Can equalization of public services narrow the regional disparities in China? A spatial econometrics approach. China Economic Review, 44, 67–78. https://doi.org/10.1016/j.chieco.2017.03.010
   Web of Science ®Google Scholar
• Li, H., & Zhou, L. (2005). Political turnover and economic performance: The incentive role of personnel control in China. Journal of Public Economics, 89(9-10), 1743–1762. https://doi.org/10.1016/j.jpubeco.2004.06.009
   Web of Science ®Google Scholar
• Li, L., Zhang, X., Chen, Y., Wu, G., & Liu, B. (2023). Equity analysis of public service delivery among regions from temporal and spatial perspectives. Regional Studies, 57(5), 935–945. https://doi.org/10.1080/00343404.2022.2110228
   Web of Science ®Google Scholar
• Liu, Q., Xu, S., & Lu, X. (2020). Imbalance measurement of regional economic quality development: Evidence from China. Annals of Regional Science, 65(2), 527–556. https://doi.org/10.1007/s00168-020-00994-4
   Web of Science ®Google Scholar
• Liu, Y., Lu, M., & Xiang, K. (2018). Balance through agglomeration: A race between geography and policy in China’s regional development. China & World Economy, 26(6), 72–96. https://doi.org/10.1111/cwe.12262
   Web of Science ®Google Scholar
• Logan, J. R. (2012). Making a place for space: Spatial thinking in social science. Annual review of sociology, 38(1), 507–524. https://doi.org/10.1146/annurev-soc-071811-145531
   Google Scholar
• Lu, M., & Xiang, K. (2016). Great turning: How has the Chinese economy been trapped in an efficiency-and-balance tradeoff? Asian Economic Papers, 15(1), 25–50. https://doi.org/10.1162/ASEP_a_00398
   Web of Science ®Google Scholar
• Lucy, W. (1981). Equity and planning for local services. Journal of the American Planning Association, 47(4), 447–457. https://doi.org/10.1080/01944368108976526
   Web of Science ®Google Scholar
• Lucy, W., Gilbert, D., & Birkhead, G. (1977). Equity in local service distribution. Public Administration Review, 37(6), 687–697. https://doi.org/10.2307/975337
   Web of Science ®Google Scholar
• Luo, H., Liu, X., Wu, A., & Zhong, X. (2019). Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises. Asia Pacific Journal of Management, 1–26. https://doi.org/10.1007/s10490-019-09697-7
   Web of Science ®Google Scholar
• McDonald, C., Frost, L., Kirk-Brown, A., Rainnie, A., & Van Dijk, P. (2010). An evaluation of the economic approaches used by policy actors towards investment in place-based partnerships in Victoria. Australian Journal of Public Administration, 69(1), 9–21. https://doi.org/10.1111/j.1467-8500.2009.00664.x
   Web of Science ®Google Scholar
• Ning, L., Wang, F., & Li, J. (2016). Urban innovation, regional externalities of foreign direct investment and industrial agglomeration: Evidence from Chinese cities. Research Policy, 45(4), 830–843. https://doi.org/10.1016/j.respol.2016.01.014
   Web of Science ®Google Scholar
• Nishiotis, G. R. (2004). Do indirect investment barriers contribute to capital market segmentation? Journal of Financial and Quantitative Analysis, 39(3), 613–630. https://doi.org/10.1017/S0022109000004051
   Web of Science ®Google Scholar
• Patchell, J. (1996). Kaleidoscope economies: The processes of cooperation, competition, and control in regional economic development. Annals of the Association of American Geographers, 86(3), 481–506. https://doi.org/10.1111/j.1467-8306.1996.tb01763.x
   Web of Science ®Google Scholar
• Petrakos, G., Topaloglou, L., Anagnostou, A., & Cupcea, V. (2022). Geographies of (in) justice and the (in) effectiveness of place-based policies in Greece. European Planning Studies, 30(5), 899–916. https://doi.org/10.1080/09654313.2021.1928050
   Web of Science ®Google Scholar
• Poncet, S. (2003). Measuring Chinese domestic and international integration. China Economic Review, 14(1), 1–21. https://doi.org/10.1016/S1043-951X(02)00083-4
   Web of Science ®Google Scholar
• Pugalis, L., & Bentley, G. (2014). Place-based development strategies: Possibilities, dilemmas and ongoing debates. Local Economy, 29(4-5), 561–572. https://doi.org/10.1177/0269094214541617
   Google Scholar
• Rodriguez-Pose, A., Psycharis, Y., & Tselios, V. (2012). Public investment and regional growth and convergence: Evidence from Greece. Papers in Regional Science, 91(3), 543–568. https://doi.org/10.1111/j.1435-5957.2012.00444.x
   Web of Science ®Google Scholar
• Samuelson, P. A. (1964). Theoretical notes on trade problems. Review of Economics and Statistics, 46(2), 145–154. https://doi.org/10.2307/1928178
   Web of Science ®Google Scholar
• Shi, S., Wall, R., & Pain, K. (2019). Exploring the significance of domestic investment for foreign direct investment in China: A city-network approach. Urban Studies, 56(12), 2447–2464. https://doi.org/10.1177/0042098018795977
   Web of Science ®Google Scholar
• Todes, A., & Turok, I. (2018). Spatial inequalities and policies in South Africa: Place-based or people-centred? Progress in Planning, 123, 1–31. https://doi.org/10.1016/j.progress.2017.03.001
   Web of Science ®Google Scholar
• Ward, K., & Jonas, A. E. G. (2004). Competitive city-regionalism as a politics of space: A critical reinterpretation of the new regionalism. Environment and Planning A: Economy and Space, 36(12), 2119–2139. https://doi.org/10.1068/a36223
   Web of Science ®Google Scholar
• Weck, S., Madanipour, A., & Schmitt, P. (2022). Place-based development and spatial justice. European Planning Studies, 30(5), 791–806. https://doi.org/10.1080/09654313.2021.1928038
   Web of Science ®Google Scholar
• Wei, Y. D. (1999). Regional inequality in China. Progress in Human Geography, 23(1), 49–59. https://doi.org/10.1191/030913299676254572
   Web of Science ®Google Scholar
• Wei, Y. D. (2015). Spatiality of regional inequality. Applied Geography, 61, 1–10. https://doi.org/10.1016/j.apgeog.2015.03.013
   Web of Science ®Google Scholar
• Wildasin, D. E. (2011). Fiscal competition for imperfectly-mobile labor and capital: A comparative dynamic analysis. Journal of Public Economics, 95(11-12), 1312–1321. https://doi.org/10.1016/j.jpubeco.2010.11.014
   Web of Science ®Google Scholar
• Winterton, R., HulmeChambers, A., Farmer, J., & Munoz, S. A. (2014). Considering the implications of place-based approaches for improving rural community wellbeing: The value of a relational lens. Rural Society, 23(3), 283–295. https://doi.org/10.1080/10371656.2014.11082071
   Google Scholar
• Wojcik, D. (2002). Cross-border corporate ownership and capital market integration in Europe: evidence from portfolio and industrial holdings. Journal of Economic Geography, 2(4), 455–491. https://doi.org/10.1093/jeg/2.4.455
   Web of Science ®Google Scholar
• Wu, A., & Wang, W. (2013). Determinants of expenditure decentralization: Evidence from China. World Development, 46, 176–184. https://doi.org/10.1016/j.worlddev.2013.02.004
   Web of Science ®Google Scholar
• Wu, F. (2018). Planning centrality, market instruments: Governing Chinese urban transformation under state entrepreneurialism. Urban Studies, 55(7), 1383–1399. https://doi.org/10.1177/0042098017721828
   Web of Science ®Google Scholar
• Young, A. (2000). The razor’s edge: Distortions and incremental reform in the People’s Republic of China. Quarterly Journal of Economics, 115(4), 1091–1135. https://doi.org/10.1162/003355300555024
   Web of Science ®Google Scholar
• Zeng, D., & Zhao, L. (2010). Globalization, interregional and international inequalities. Journal of Urban Economics, 67(3), 352–361. https://doi.org/10.1016/j.jue.2009.11.002
   Web of Science ®Google Scholar
• Zhang, K., Shao, S., & Fan, S. (2020). Market integration and environmental quality: Evidence from the Yangtze river delta region of China. Journal of Environmental Management, 261, 110208. https://doi.org/10.1016/j.jenvman.2020.110208
   PubMed Web of Science ®Google Scholar
• Zheng, S., & Kahn, M. E. (2013). Does government investment in local public goods spur gentrification? Evidence from Beijing. Real Estate Economics, 41(1), 1–28. https://doi.org/10.1111/j.1540-6229.2012.00339.x
   Web of Science ®Google Scholar
• Zhu, X. (2014). Mandate versus championship: Vertical government intervention and diffusion of innovation in public services in authoritarian China. Public Management Review, 16(1), 117–139. https://doi.org/10.1080/14719037.2013.79802
   Web of Science ®Google Scholar